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The Interaction of Economic Decision

Costică Vlad () and Adriana Cristina Pavel Surlaru ()
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Costică Vlad: "Ovidius" University of Constanta
Adriana Cristina Pavel Surlaru: Economic High School of Buzău

Ovidius University Annals, Economic Sciences Series, 2019, vol. XIX, issue 2, 934-938

Abstract: Any economic action shall take place on the basis of a succession of domain-specific decisions. In fact, economic decisions are made on two stages, with a strong interaction and correlation between them. The first level of importance is given to investment and financing decisions, backed by two other decisions, namely savings and consumption. In real activity, it is not possible to research each of the decisions separately. In theory, however, the perfect capital market model was created, based on a set of criteria considered durable over time. It should be noted that even if the basis of decisions is made under pre-established assumptions, they are of good practical application. The authors' intention is to explain to the economic environment the characteristics of each decision and the importance of their practical compliance.

Keywords: consumption decision; saving decision; investment decision; financing decision financial capital; physical capital (search for similar items in EconPapers)
JEL-codes: F30 G01 (search for similar items in EconPapers)
Date: 2019
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